Searchlight Resources  (TSXV: SCLT, OTC: SCLTF, FRA: 2CC2) is a Canadian mineral exploration and development company primarily focused on Critical Elements including Rare Earths elements (REEs) and Uranium as well as Gold in Canada’s top-ranked mining jurisdiction, Saskatchewan. The company, which owns over 1300 Km2 of claims, shared its metallurgical test results for its Kulyk Rare Earths sample recently and continues to expand its portfolio of Critical Elements properties that have outstanding potential.

Why do REEs matter? 

REEs constitute a significant component of electric vehicles.  Rare Earth provide the “secret sauce” that power the strongest magnets in electric vehicle motors and wind turbines which generate renewable electric power .Many governments are promoting a fast transition from internal combustion engine vehicles (ICE Vehicles) to electric vehicles (EV’s), such that REEs will be in for growing demand for the foreseeable future, and we could, if it hasn’t already started, witness a new “gold rush.” China is currently the main producer and refiner, but other countries are sorting out ways to become REEs independent. Here are some key numbers to remember about the EV sector:

-The sector is expected to grow at a Compounded Annua Growth Rate of 17% from 2023 to 2027 and should reach US $858B by 2027;

-Electric Vehicles market unit sales are expected to reach 16 million vehicles annually in 2027.

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Company Overview 

Searchlight Resources (TSXV: SCLT, OTCQB: SCLTF) is a Canadian exploration company focused on Saskatchewan, Canada, considered the premiere jurisdiction for mining investment in Canada in 2020 by the Fraser Institute. The company owns a wide variety of projects, including uranium, rare earths, and gold projects. Most of its projects are owned 10% and royalty free.

One of the company’s flagship projects is the Kulyk Lake Rare Earths and Uranium property. Located 165 Km North of La Ronge, Saskatchewan, and 65 Km South of the Key Lake Uranium Mine, previous rock samples contained 33.6% Total Rare Earths and 7.3% Critical Rare Earths. Preliminary tests indicate the mineralisation at Kulyk Lake can be concentrated to grades acceptable for commercial refining. Additionally, Searchlight has determined that Rare Earths and Uranium occur together in a swarm of pegmatites that are world class in size, with multiple showings extending over a twenty-kilometer strike length, offering the potential for a world class mine with multiple payable elements.

"Searchlight is pleased with these excellent results confirming the monazite from the Fanta showing can concentrated into a commercial monazite concentrate," stated Stephen Wallace, Searchlight's CEO regarding one zone on the Kulyk Lake property. "In addition, this allows the company to know based on an economical test that the monazite at Fanta is viable and encourages us to push forward to drilling."

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On February 27, the company announced it staked seven new pegmatite claims, 5 of which already host beryllium and tourmaline, which are pathfinder minerals for lithium-cesium-tantalum pegmatites. All those new claims are located in Saskatchewan, turning the province into one of the hot spots in Canada for lithium exploration.

Searchlight also closed on an option agreement for the Jan Lake claims to Brunswick Exploration, a premier Canadian Lithium explorer. Searchlight will option 100% of its Jan Lake property an its 50% joint venture interest in the Hanson Lake property. In compensation, Searchlight will receive the following in an all or nothing option arrangement:

-$35k in cash, shares, or both on signing;

-$700k in cash, shares, or both;

-$1M work commitment over 4 years;

Plus the following potential bonus payments

-$250k in cash, shares, or both at Brusnwick’s option upon the filing of a resource estimate;

-$250k in cash, shares, or both at Brunswick’s option of filing a PEA;

-2% NSR retained by Searchlight with  buyout provisions half of which can be bought by Brunswick for $1M and the other half for $2M.

Share Structure / Financials 

Let’s take a look at the balance sheet. As of December 31, 2022, Searchlight had $1.65M in cash and no debt. The company spent 33% of its expenses on mineral exploration ($177k) for total expenses of $526k during the last quarter.

The company has 138.2 million shares issued and outstanding, and 158.5 million shares fully diluted. The stock price currently sits at only $0.05 and has traded in a range from from $0.035 to $0.14 over the last 52 weeks.

On February 10, Searchlight Resources also announced it upgraded to the OTCQB. The OTCQB is a US trading platform run by the OTC Markets Group. It is the leading market for early-stage and international businesses based in the US and other countries dedicated to offering their American investors a top-notch trading and information experience. Companies must be current with their financial reporting, pass a minimum bid price test, and go through an annual corporate verification and management certification procedure to be eligible. The OTCQB quality standards offer a high level of baseline openness and the technology and regulations to enhance investors' access to information and trading experiences.

Conclusion

Searchlight Resources (TSXV: SCLT, OTC: SCLTF, FRA: 2CC2) continues to explore REE opportunities. Recent results from the Kulyk Lake North Rare Earths property were exceptional, and monetizing the monazite seems possible. Thanks to LOI optioning claims, the company brings cash without financing and upgrades to the OTCQB. Get to know more about the company on our website.

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Disclaimer

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